The Impact of Palm Oil Plantation Development towards Income Disparity
Journal Title: Academic Research International - Year 2014, Vol 5, Issue 2
Abstract
West Kotawaringin Regency is development center of palm oil plantation business in Central Kalimantan Province, Indonesia. This business development will have impact on income disparity. The aim of this research is to estimate the impact of palm oil plantations toward income disparity. Social Accounting Matrix (SAM) model constructed from Input-Output Table and other necessary data then continue with Mixed Multiplier analysis. The finding of this research indicates that the business of palm oil plantation have greatest impact towards income disparity from other sector/sub-sector. Based on the above conclusions it is suggested that (1) the entrepreneurs of palm oil shall orient their business on investment of labor intensive than capital intensive, therefore the salary/wages proportions toward value added can be increased, or more labor is absorbed, and (2) the local government in order to take economic decisions noticed that development of palm oil sub-sector gives more impact on capital (owner) than labor (owner), and the ratio is far greater than the other sector/sub-sector.
Authors and Affiliations
Abdul Mukti, Budi Setiawan, Henny Pramoedyo, Luthfi Fatah
Keywords
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